The collapse of Enron and the conviction of its accounting firm, Arthur Andersen, mark a critical juncture in American business and political life. Not only the accounting profession but corporate America as a whole—and those charged with regulating it—must now confront what has been learned, what is at stake, and what can and should be done to restore public confidence in the integrity of the markets.
—Bigger than Enron, Frontline 2002
Before we watch the documentary film, Enron, The Smartest Guys in the Room (Gibney & Kliot, 2005), let’s assess our knowledge of the Enron scandal.1 Do we even remember the rise and fall of the Enron Corporation very clearly? After all, a new generation has emerged since the company’s December 2, 2001 bankruptcy. And, noting the date, did some simply discard that news, since we were then, and are still, adjusting to the devastation resulting from the bombing of the World Trade Center towers?
Comparing the Enron Case to 9/11
We can compare the two events in time, but maybe very little else to compare otherwise. Of course, the collapse of Enron was earth-shaking to many people around the world who had invested in the company and had faith in its positive pronouncements. And, it was earth-shaking to others who had benefited from Enron’s philanthropic largess.
However, were lives lost? Were there lasting injuries? Unfortunately, we must answer “Yes” to both. Continue reading Injustice Served at Enron, AA&Co: The Roles of Michael Chertoff and Sherron Watkins